What are these?
Bills are influenced by two factors: the amount of electricity used and the cost of delivering that electricity to properties.
These two factors are broken down into six charges on your Jacana Energy bill: system control, System Availability Charge, energy, demand, retail (non-regulated) and environmental.
All costs associated with network charges– system control, network access, energy and demand - are passed on directly from the network provider and charged to all customers regardless of their electricity retailer.
In addition to your retail charge, your electricity costs include:
- a system control charge: charged on behalf of the network system controller to cover the management of the electricity grid system, its frequency and reliability.
- a System Availability Charge: passed on from the network provider to cover costs associated with the maintenance of the network of poles and wires.
- an energy charge: usage charge based on the amount of electricity the network transmitted for you.
- a demand charge: covers the amount of energy the network needs to transmit electricity to your premises.
- environmental charges: relate to the Federal Government Renewable Energy Target scheme. Small-scale Renewable Energy Scheme (SRES) and Large-scale Renewable Energy Target (LRET) are managed by the Office of the Renewable Energy Regulator and aim to encourage electricity generation from renewable sources. For more information visit the Clean Energy Regulator.
The network components of electricity prices can make up to 40-45% of the electricity bill. Jacana Energy passes these costs on directly to customers without any mark ups.
Unlike generation and retail of electricity, there is no competitive market for the price of network charges in Australia. Network charges are determined by a regulator and reviewed annually in July. For more information about network charges visit Power and Water Corporation.
How can you reduce your network charges?
You can impact the amounts you are being charged for the network component of your electricity prices by reducing your peak demand charge (kVA) and/or reducing your electricity consumption (kWh).
Opportunities for reduction will not be the same for all businesses, depending on the industry your are in. However, by following this general advice, you could make a significant difference to your bills:
- Review your operations and switch some of your electricity use to off-peak times
- Flatten your operational load to avoid large peaks at any one time during the day
- Rotate the use of your equipment/plant to limit your peak demand and spread your usage more evenly
- Use storage systems and buffer capacities to differ your activities until off-peak times.
For more advice about reducing your network charges, contact your Commercial and Industrial Team.